We have been approached by an individual who has just registered for self-assessment going back 3 years ago. He has previously told us that he has been self-employed for 15 years but he now wants to come clean and declare the last 4 (different trade).
Is there anyone here that would touch this with a barge pole or should we at least be filing a SOCA report.
thanks
Replies (6)
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I am not sure what you mean by "he now wants to come clean and declare the last 4". If he wants to "come clean" he wants to declare the entirety of his previous under-declarations of income chargeable to tax. It appears that means income for the past 15 years.
Please clarify.
David
It seems to me that the client is not proposing to come clean. There are things which you cannot polish!
It does seem to me that you have an obligation under s330 Proceeds of Crime Act 2002 / Money Laundering Regulations 2007 to submit a Suspicious Activity Report to the National Crime Agency (which has taken over the responsibilities of SOCA) - assuming you suspect that some tax liabilities will have arisen in respect of the 11 earlier years.
David
He is still a prospective client. You've answered the question yourself in that he has no money Therefore don't touch it.
David
Does the OP still have to complete a SOCA report if he is not yet a client ?
Yes. The legislation does NOT refer to suspicions "of clients" - it refers to suspicions based on information which has come to you in the course of your activity in the regulated sector. So that includes suspicions of potential clients for whom you ultimately do not act.
David